The low profitability of RH Entertainment Ltd’s summer 2022 festivals and the resulting turnover drove the company into corporate restructuring. On 20 October 2022, the District Court commenced restructuring proceedings against RH Entertainment Ltd.
“The restructuring proceedings involved issues that we could not foresee. We had to pay practically all our bills in advance, both at the filing stage and after the restructuring proceedings started. At the same time, there were notable offsets against future cash receipts, which quickly and completely stopped cash flow. Although the autumn event sales have been very successful and mostly profitable, it is impossible to operate with this financing model and we had to conclude that there is no possibility to continue operations“, says CEO Riki Huhtala.
RH Entertainment Oy has filed for bankruptcy with the district court on 10 November 2022.
The bankruptcy filing will have no impact on the operations of the companies co-owned by RH Entertainment Oy, which will continue to operate as before.
Events on 10.11.2022 will take place as usual. In the application to the District Court, the District Court has been requested for an urgent decision on bankruptcy. The urgency is requested in order to quickly appoint an administrator for the bankruptcy estate who can arrange for the organisation or cancellation of future events and other activities.
“As part of the bankruptcy proceedings, the possibility of organizing, selling and relocating events in such a way as to minimise the damage to both customers and partners despite the bankruptcy will be explored as soon as possible. This decision has been very difficult and arduous to make. We are very sorry for the inconvenience and harm caused to our customers, staff, clients and partners,” concludes Huhtala.
All events and their possible cancellations will be communicated separately, both on our social media channels and on the company’s website.
RH Entertainment was the organisator for the popular Raskasta Joulua tour as well as Rock In The City festival tour.